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NOTES TO THE FINANCIAL STATEMENTS
VTech Holdings Ltd Annual Report 2008
46
17 SHARE CAPITAL AND SHARE OPTIONS CONTINUED
(c) Capital Management
The Group’s primary objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, so
that it can continue to provide returns for shareholders and bene ts for other stakeholders, by pricing products and services
commensurately with the level of risk and by securing access to  nance at a reasonable cost.
The Group actively and regularly reviews and manages its capital structure to maintain a balance between the higher shareholder
returns that might be possible with higher levels of borrowings and the advantages and security a orded by a sound capital
position, and makes adjustments to the capital structure in light of changes in economic conditions.
The Group has no bank borrowings as at 31st March 2008 and has negative net debt on account of its large cash and cash
equivalents. Adjusted capital comprises all components of equity less unaccrued proposed dividends.
In order to monitor its capital structure, the Group may adjust the amount of dividends to be paid to shareholders, issue new shares,
return capital to shareholders or raise new debt  nancing.
The adjusted capital at 31st March 2008 and 2007 was as follows:
Group Company
2008 2007 2008 2007
US$ million US$ million US$ million US$ million
Total equity 452.3 343.3 246.7 268.5
Less: Proposed dividends (124.2) (98.0) (124.2) (98.0)
328.1 245.3 122.5 170.5
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
18 RESERVES
Group Company
2008 2007 2008 2007
US$ million US$ million US$ million US$ million
Share premium 98.3 90.7 98.3 90.7
Other properties revaluation reserve 6.1 6.1 ––
Revenue reserve 318.3 230.5 135.7 164.3
Exchange reserve 16.7 1.3 (1.2) (1.2)
Capital reserve 1.8 2.8 1.8 2.8
Hedging reserve (1.0) –––
440.2 331.4 234.6 256.6
An analysis of movements in reserves is set out below:
Share premium
Brought forward 90.7 90.3 90.7 90.3
Exercise of share options 5.7 0.4 5.7 0.4
Transfer from capital reserve 1.9 –1.9 –
Carried forward 98.3 90.7 98.3 90.7
Other properties revaluation reserve
Brought forward and carried forward 6.1 6.1 ––